

You Don’t Need More Deals... You Need THIS - David Richter
May 21, 2025
David Richter, co-author of Profit First for Real Estate Investing and founder of Simple CFO, shares strategies for real estate investors feeling cash-poor despite high profits. He discusses common cash management mistakes and the importance of effective financial clarity. Richter emphasizes the 'Profit First' methodology, advocating for creating multiple accounts to better manage cash flow. He also touches on the psychological aspects of financial decisions and the necessity of maintaining liquidity to ensure long-term success in real estate.
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Investors Often Cash Poor
- Real estate investors are often cash poor despite making paper profits due to poor cash management.
- Many run their businesses like accidental nonprofits, spending more than they earn and lacking clarity on cash flow.
Use Multiple Bank Accounts
- Open separate bank accounts for profit, owner's compensation, taxes, operational expenses, and income.
- Use this system to give every dollar a specific purpose and gain clarity on your cash.
Ryan's 2018 Cash Crunch Story
- Ryan Pineda struggled with cash flow while managing 70+ properties from a single bank account.
- The 2018 market correction exposed how renovate-over-budget and slow sales can quickly drain cash reserves.